Open, an emerging Indian SME neobank backed by Google, has officially acquired consumer neo-banking startup Finin for $10 million. According to a recent press release, the acquisition will involve both cash and stock and represents Open's focus on broadening its offerings and deepening its relationships with banks.
Finin is one of the first consumer-oriented neobank startups to have emerged in India, where it initially raised $1 million from Unicorn India Ventures and other firms. Open intends for the deal to complement its B2B offerings to banks by adding consumer-focused diversity.
For example, Finnin can add value to SMEs wanting to open salary accounts for employees, as well as help "banks wanting to launch digital banking propositions using Open’s cloud-native digital banking OS BankingStack," explained Suman Gandham, the founder and chief executive of Finin.
Consumer-Focused Neobank Acquisitions
Emerging Neobank Open Has Acquired Finin for $10 Million
Trend Themes
1. Consumer-oriented Neobank Startups - The emergence of consumer-oriented neobank startups presents an opportunity for existing banks to broaden their offerings and deepen their relationships with their customers.
2. Acquisition of Neobank Startups - The acquisition of neobank startups by larger companies creates opportunities for entrepreneurs and investors to develop innovative fintech solutions for specific customer segments.
3. Digital Banking OS - The development of cloud-native digital banking OS presents an opportunity for banks to launch digital banking propositions and streamline their operations.
Industry Implications
1. Banking - The acquisition of neobank startups by larger companies presents an opportunity for traditional banks to expand their customer base and improve their technology offerings through strategic partnerships.
2. Fintech - The emergence of consumer-oriented neobank startups creates opportunities for fintech entrepreneurs and investors to develop innovative financial products and services tailored to specific customer segments.
3. Cloud Computing - The development of cloud-native digital banking OS presents an opportunity for companies specializing in cloud computing to develop customized solutions for banks and other financial institutions.